Several federal deductions may help eligible American workers lower their taxable income. These benefits apply to qualified tips, overtime compensation and interest paid on certain vehicle loans.

Eligible tipped workers may deduct up to $25,000 in qualified voluntary tips. The deduction is available only for occupations officially recognized as regularly receiving tips. Income limits and other requirements apply.

The overtime deduction allows eligible workers to deduct the premium portion of qualified overtime compensation—the amount paid above the regular rate. The maximum is $12,500 for an individual or $25,000 for qualifying married couples filing jointly.

A separate deduction may allow taxpayers to claim up to $10,000 of interest paid on a loan for a qualifying personal-use vehicle. The loan must meet several requirements, including rules concerning its origination, vehicle use and final assembly. Leased and used vehicles do not qualify.

These benefits are deductions, not complete exemptions from every tax. Social Security, Medicare and applicable state taxes may still apply. Income phaseouts can also reduce or eliminate the available deduction.

Keep pay stubs, payroll summaries, loan statements and vehicle information. Records are especially important if qualified tips or overtime are not clearly separated on an income statement.